Copper prices rose slightly to near $10,000 per ton amid reports of China’s planned expansion of strategic reserves for metals including copper, cobalt, nickel, and lithium. The stronger dollar poses challenges for international buyers, while other metals exhibited mixed price movements.
On Friday, copper prices in London experienced a modest increase, nearing the significant threshold of $10,000 per metric ton. This rise followed a media report indicating that China plans to bolster its strategic reserves of essential industrial metals in 2023, which include copper, cobalt, nickel, and lithium. The National Food and Strategic Reserves Administration, responsible for managing official stockpiles, conducted price inquiries and bidding, although specific details regarding volumes or timing were not disclosed.
As of 0303 GMT, benchmark three-month copper was priced at $9,970 per metric ton on the London Metals Exchange (LME), reflecting an increase of 0.3%. A trader noted that despite the strategic buying news, metals prices remained relatively unaffected due to the lack of detailed information.
The dollar experienced slight strengthening, attributed to the U.S. Federal Reserve’s statement indicating no immediate intentions to lower interest rates. By 0238 GMT, the dollar index rose 0.03 to 103.82, following a 0.36% increase the previous day. A stronger dollar makes dollar-priced metals pricier for buyers using other currencies, potentially impacting demand.
Other metals on the LME showed varied performance: aluminium rose by 0.3% to $2,666 per ton, lead increased by 0.1% to $2,057.5, zinc was up by 0.5% to $2,932, while tin saw a slight dip of 0.1% to $35,310. Nickel’s price fell by 2.0% to $16,240 per ton.
In the Shanghai Futures Exchange (SHFE), copper climbed 0.2% to 81,540 yuan ($11,252.64) per ton. Aluminium remained unchanged at 20,845 yuan, zinc rose by 0.6% to 23,895 yuan, lead decreased by 0.5% to 17,590 yuan, nickel lost 0.3% to 129,890 yuan, and tin gained 1.0% to reach 281,620 yuan. The conversion rate noted was $1 = 7.2463 Chinese yuan renminbi.
In summary, copper prices have risen slightly due to China’s plan to increase its stockpiling of critical industrial metals. While the dollar’s strengthening poses challenges for dollar-priced metals, fluctuations in the prices of various metals on the LME and SHFE reflect ongoing market dynamics. The lack of specific details regarding China’s purchasing plans may temper immediate effects on metal prices.
Original Source: www.tradingview.com
